The Chairman of the United States Securities and Exchange Commission (SEC), Gary executioner took yet another plunge into the unregulated crypto industry. This time, Chairman Gensler reiterated his long-standing argument about how crypto exchange platforms can register with the Wall Street regulator.
Gensler took to Twitter with an exclusive video explaining how cryptocurrency exchanges pose a threat to consumer protection, and asked them to further register under the securities law. He asked the officials of the commission to work with these platforms in an effort to regulate them, just like stock exchanges. He further noted that the SEC is also in the process of specifically registering certain currencies as securities.
While stressing that there is an underlying legal framework in capital markets that ensures market integrity and protects against fraud and manipulation, Gensler argued that “there is no reason to treat the crypto market differently just because a different technology is used”. He further suggested in his tweet that if a company builds a crypto market that protects investors and complies with the standard of market regulation, people are likely to have more confidence in that market.
Gensler Says New Crypto Legislation Could Threat the $100 Trillion Capital Market
Last month, after the bipartisan crypto law legislation in the US finally came out, Gesler expressed concern about its pro-crypto nature, claiming it would be unfavorable to the $100 trillion capital market. The new bill that proposed to reassign oversight for both crypto spot markets and futures under the jurisdiction of the Commodity Futures Trading Commission (CFTC) was criticized by Gensler.
executioner do not agree with commenting on the proposed law, “we don’t want to undermine the protection we have in a $100 trillion capital market. You don’t want our current stock exchanges, our current investment funds, our current listed companies? [to] sort of inadvertently saying through the stroke of a pen, ‘You know what, I want to be non-compliant too. I want to be outside the regime’ which I think has been a huge benefit to investors and economic growth over the past 90 years’ .
Gensler further reiterated his prevailing securities argument about the majority of crypto tokens covered by the securities law. He said that while the SEC has no plans to expand its jurisdiction, “but these tokens are being offered to the public, and the public hopes for a brighter future. Those are the characteristics of an investment contract”, a kind of security.